The bundled service from Sky will be available from as little as €57 a month, but most people who take a bundle offer from Sky will likely opt for the €67 a month option as this one offers more broadband usage.

Both these offers cover line rental for the phone and include evening and and weekend landline calls in the Republic.

The new offerings should exert a downward pressure on prices.

Sky broadband, TV and home-phone services are already on offer in Britain, where Sky has emerged quickly as the number one triple-play provider in the UK.

UPC has a competitive 'fibre power' offering here with higher broadband speeds than Sky, and offers up to 100 free minutes a month to Irish landline and mobiles. Its monthly charge is €69.

The problem is that the UPC offering is only available in urban areas.

Eircom will feel the heat from this competition. It offers broadband and cheap weekend calls from between €45 and €65 a month. There are six-month discounts for new customers.

But the former state telecoms company will struggle to match the UPC and Sky offerings, especially as its broadband speeds are slow compared with the two new entrants. The same slower broadband is available from Vodafone.

Speed is set to become a big issue as more people stream, and some download, movies to watch at a time that suits them.